Shares of Tekmira Pharmaceuticals spiked 21 percent Friday morning after federal regulators eased a ban on the clinical trial of its Ebola treatment.
The Vancouver-based company’s shares — up 58 percent in the past month as cases of the deadly virus have spread — had slipped earlier this month after the Food and Drug Administration put a hold on the TKM-Ebola drug trials.
The easing of the ban — after Tekmira’s drug has shown promise in tests on animals — “would pave the way for emergency use authorization (if needed) in the US,” according to Jason Kolbert, an analyst with Maxim Group.
“The ensuing Ebola outbreak and the danger that is poses to the United states and the rest of the world set the stage for [the latest FDA action], along with the lack of adequate therapeutic agents against Ebola and the potential viability of TKM-Ebola as a treatment option,” Kolbert wrote in a report on Friday.
Also on Friday, the World Health Organization declared the outbreak of the virus an international public health emergency. The current outbreak, the largest ever, started in the African nation of Guinea in December and it is believed to have affected 1,711 people, according to WHO — including 1,070 confirmed cases.
While Tekmira’s Ebola treatment is closest to coming to market, Kolbert said he was aware of early-stage Ebola programs at Bavarian Nordic. Shares of the Denmark-based company have not reacted as robustly as Tekmira.
Bavarian Nordic shares are down 10 percent in the last month and were down 3.6 percent on Friday morning.
Tekmira shares stood at $16.84, up 18.3 percent as of 10:10 a.m Friday.